Case Analysis - M1A2 United Airlines: How Do We Get There from Here?

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To start, I would like you to read the case problem on page 41-42 of your text (which I have attached as a word document below), United Airlines: How Do We Get There from Here?, and apply the 3 step problem solving approach that is discussed on page 42-43. Set out your answers with the following headings:

Step 1: Define the problem

Step 2: Identify the causes of the problem by using material from Chapter 1.

Step 3: Make recommendations for solving the problem.


  • Provide a title page with your name and date.
  • Your content should include 600 words, and use Times New Roman font.
  • You should include headings, topic sentences, and the inclusion of the weekly learning.
  • Citations and references should be APA compliant.
  • Review the rubric for my specific expectations and completely answer all of the questions.

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United Airlines: How Do We Get There from Here? How do we get there from here? That’s the question three successive United Airlines CEOs, thousands of employees, tens of thousands of customers, and a sim- ilarly large number of investors have been asking themselves for several years. All travelers have stories to tell, and those told by some of United’s passengers sound like clips from a horror movie. Some passengers were held over for 20 hours in a military barracks in Canada, at one point all flights across the globe were canceled due to a computer glitch, and champion golfer Rory McIlroy’s clubs were lost on the way to a tournament. These stories are reflections of deeper, more perva- sive problems at the airline. United has been at or near the bottom in industry performance since its merger with Continental in 2010. This is true despite its com- petitors also executing large mergers (American with U.S. Air, Delta with Northwest) and confronting the same economic pressures. Besides suffering generally declining revenues and profits over many years, United was the target of 43 percent of all traveler com- plaints filed against US-based airlines in 2015 and ranked last in customer satisfaction among its peers. The company also paid $2.8 million in fines for leaving passengers stranded on the tarmac and mistreating those with handicaps. One passenger with cerebral palsy had to crawl off the plane because a wheelchair was unavailable.65 CUTTING TO GET AHEAD Management’s intense focus on cutting costs—through layoffs, furloughs, and the outsourcing of baggage handling—has demoralized employees, the same em- ployees who have to deal with unhappy travelers whose flights have been delayed or canceled, or who have horrible coffee or lost luggage. Employees also complained that their new uniforms are cheap and of poor quality. The airline has long struggled to sign contracts with flight attendants, mechanics, pilots, and gate agents. An airline analyst for Bloomberg Intelligence described the situation this way: “Unhappy mechanics do not tend to go the extra mile—or the extra foot—to get the airplane ready to go.” The seriousness and pervasive- ness of employee problems are captured by the fol- lowing passenger quote about United’s employees: “As individuals they are really nice people . . . but they are in such a horrible situation, constantly trying to deal with customers that are not happy, and they’re completely powerless.”66 WHO’S TO BLAME? Who is responsible for sustained poor performance? Many point to the CEO. United has had three since 2010. Jeff Smisek, who led Continental, orchestrated the merger with United at that time and was responsi- ble for implementing (or not) many of the changes since. The merger of the two airlines’ many operating systems was done all at once and not effectively. For instance, the program used to schedule pilots actually lost track of pilots and led to widespread flight cancel- lations. The same faulty system even assigned flights to pilots who were retired or dead.67 Smisek was ousted from the top spot, along with two other executives, due to allegations of unethical conduct. The three were accused of trading favors with David Samson, chair of the Port Authority and in charge of Newark Liberty International Airport (a major hub for United). Samson was to allocate millions of dol- lars to upgrade gates and terminals used by United in exchange for the airline reinstating a flight from Newark to Columbia, South Carolina, where Samson had a summer home. The unprofitable flight, later known as the “chairman flight,” was not only reinstated, but it also was scheduled to take off and land at times con- venient for weekend travel. (The flight was immedi- ately canceled after Smisek’s dismissal.) Oscar Munoz was then appointed CEO, but he suf- fered a heart attack weeks later. In his absence, Brett Hart, United’s general counsel, served as the interim CEO. Munoz eventually returned, but the dismissals and the generally difficult situation have caused many other executives to leave, including some who were poached by competitors. The result is a “management suite rife with openings, and three key executives have ‘acting’ before their titles.”68 All told, it may be difficult for United to attract top talent in the near future. It may be no surprise that in the midst of manage- ment turmoil the airline lost sight of its customers. Most notably United failed to make a priority of ensuring that flights departed and arrived on time. The airline has historically relied on linear routing, which entails send- ing one plane from New York to Chicago, then to Denver, and ultimately to Seattle. While this practice maximizes profits by keeping the plane in the air all day, loaded with revenue-generating travelers, it also means that if something goes wrong at one airport, such as bad weather or equipment failure, many other flights and their passengers are affected. In contrast, Delta Air Lines, the industry leader, made on-time per- formance a priority and has effectively eliminated flight cancellations unrelated to storms. Some attempts at United to improve the efficiency and speed of boarding also went astray and actually resulted in passengers spending more time in line and boarding. Finally, United is widely known to have one of the oldest fleets in the sky.69 This fact has implications for everybody—pilots, flight attendants, mechan- ics, baggage handlers, and, of course, customers. POSSIBLE SIGNS OF RECOVERY There is some light on the horizon. In early 2016, Munoz returned to work as CEO, bringing knowledge and credibility to the job. He worked outside the airline industry before becoming United’s chief operating officer, plus he had been on the board of Continental Airlines. In his short time at the helm, he has visited employees on the job, crashed employee parties at bars, and reached out to employees in other ways. Coffee suppliers have been changed, and the airline began providing free snacks in economy class. Prog- ress has been reported in some contract negotiations. Profits are up, as they are at all airlines since oil prices have dropped, reducing the cost of fuel. One person described the current situation this way: “The airline was just incredibly sick and Oscar Munoz is like a shot of penicillin. It’s going to get better, but it has to have some time to actually settle in and work.”70 APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB Step 1: Define the problem. A. Look first to the Outcome box of the Organizing Framework to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and current state. State your problem as a gap, and be sure to consider problems at all three levels. If there is more than one desired outcome that is not being accomplished, decide which one is most important and focus on it for steps 2 and 3. B. Cases have protagonists (key players), and problems are generally viewed from a particular protagonist’s perspective. Therefore, you need to determine from whose perspective— employee, manager, team, or the organization— you’re defining the problem. C. Use details in the case to determine the key problem. Don’t assume, infer, or create problems that are not included in the case. D. To refine your choice, ask yourself, Why is this a problem? Explaining why a particular outcome is a problem helps refine and focus your thinking. It is useful if you focus on topics in the current chapter, as we generally select cases that illustrate concepts in the current chapter. Step 2: Identify causes of the problem by using material from this chapter, which has been summarized in the Organizing Framework for Chapter 1. Causes will tend to show up in either the Inputs box or the Processes box. A. Start by looking at the Organizing Framework and determine which person factors, if any, are most likely causes to the defined problem. For each cause, explain why this is a cause of the problem. Asking the “why” question multiple times is more likely to lead you to root causes of the problem. For example, are characteristics related to the CEO(s), employees, or customers causes of the problem you defined in Step 1? This might lead to the conclusion that Smisek’s unethical behavior is a root cause of the problem. B. Follow the same process for the situation factors. In the context of this case, situation factors can be external to the organization, such as competitors and the economic environment. They also can be internal to the company but outside the employee, such as leadership and organizational culture. For each factor, ask yourself, Why is this a cause? For example, United’s competitors improved their processes and customer service, which likely led passengers to choose to fly their airlines instead. Why did this happen? United’s leadership made cost-cutting a priority above all else, including customer and employee satisfaction. This eroded employee morale and further diminished customer satisfaction. By following the process of asking why multiple times you are likely to arrive at a more complete and accurate list of causes. Again, look to the Organizing Framework for this chapter for guidance. C. Now consider the Processes box in the Organizing Framework. Are any processes at the individual, group/team, or organizational level potential causes of your defined problem? It certainly seems that poor leadership and/or ineffective change management are potential causes. For any process you consider, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at the root causes. D. To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem. Step 3: Make recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recommendation is desirable and feasible? A. Given the causes identified in Step 2, what are your best recommendations? Use the material in the current chapter that best suits the cause. Remember to consider the OB in Action boxes, as these contain insights into what others have done. Details of this case, for instance, describe how the board replaced the first CEO due to the alleged ethics violations. This might be part of the solution, but is this sufficient? D. Be sure to consider the Organizing Framework— both person and situation factors, as well as processes at different levels. E. Create an action plan for implementing your recommendations.
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Explanation & Answer

Attached.

1
Running head: UNITED AIRLINES

United Airlines
Student’s Name
Institution Affiliation
Date

2

UNITED AIRLINES
United airlines
Step 1; The problem
It is evident that the airline has a number of problems as shown by the outcomes. The
major problem that affects United Airlines however is poor performance. From the case study, is
evident that the airline is at or near the bottom in the industry. 43% of all customer complaints
against US- based airlines were against United airline. In addition to this the employees are
demotivated and low, if any competitiveness. Poor performance has resulted to decrease in the
number of customers, hence leading to the low revenues. As a result of the this, the airline has
had minimal profits hence making it difficult to properly run its activities. The airline offers poor
services, and has no proper way of responding to customer complains (Drew, 2015). Customers
complain of being mistreated which has resulted law suits leading to $2.8 million in fines.
Step 2; Causes of the problem
There are various causes of this problem, and most of them seem to be internal problems.
According to the case stud...


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